Friday, September 10, 2010
RSS Entries Follow us on Twitter Follow us on Facebook
Bradesco Net Rises 23% in Second Quarter on Lending

Bradesco Net Rises 23% in Second Quarter on Lending

Banco Bradesco SA, Brazil’s second- biggest bank by market value, said second-quarter profit increased 23 percent as lending expanded in Latin America’s largest economy.

Adjusted net income, which excludes one-time events, rose to 2.46 billion reais ($1.39 billion), or 2.19 reais a share, from 2 billion reais, or 2.06 reais a share, a year earlier, the Osasco, Brazil-based bank said today in a regulatory filing. That exceeds the mean estimate of 2.26 billion reais in a Bloomberg survey of four analysts. Net income rose 4.7 percent to 2.41 billion reais.

Brazilian bank lending rose for the 16th straight month in June to a record of 1.53 trillion reais, led by loans made by the state development bank, BNDES, and mortgages, the central bank said yesterday. Bradesco’s loans expanded 15 percent to 244.8 billion reais in the quarter, while total assets increased 16 percent to 558.1 billion reais.

“Bradesco continues to enjoy a solid capital ratio,” Eduardo Nishio and Eduardo Rosman, analysts at Banco BTG Pactual SA, wrote in a July 21 note to clients. “Macroeconomic fundamentals are constructive, allowing the bank to comfortably accelerate growth in 2010-2011. We expect the bank to post the strongest loan growth among large banks, with 24 percent in 2010.”

Bradesco’s preferred stock has risen 2.5 percent this year. Itau Unibanco Holding SA, Brazil’s largest lender by market value, dropped 0.5 percent in the period while the benchmark Bovespa index lost 2.8 percent.

Source

Related posts:

  1. AmBev First-Quarter Profit Rises 3.9% on Brazil Beer
  2. Brazilian Farm Lending Rises 8% to 100 Billion Reais
  3. Telefonica First-Quarter Net Rises on European Growth
  4. Eletrobras First-Quarter Profit Rises Fivefold on Currency Gain
  5. Net Servicos Second-Quarter Profit Drops 69% on Costs

Tags: , , , , , , , , , ,


This entry was posted on Wednesday, July 28th, 2010 at 12:39 pm and is filed under Stock & Bond Market News. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Portugal Telecom Is Right to Reject Vivo Bid, Visabeira Says

May 18 (Bloomberg) — Portugal Telecom SGPS SA’s stake in Brazil’s largest mobile-phone company is “strategic” and its sale shouldn’t even be considered, said Paulo Varela of Grupo Visabeira SGPS SA, which owns one of the biggest stakes in the Portuguese phone company.

Telefonica SA made an unsolicited 5.7 billion-euro ($7 billion) offer last week to buy out Portugal Telecom’s stake in the venture that controls Vivo Participacoes SA. The bid values the Vivo shares at more than twice their average price in the month to May 6, Telefonica said.

“Although it’s a very flattering proposal, we have to reiterate Portugal Telecom’s strategy and that Brazil is a fundamental part of it,” the Visabeira vice chairman said in a May 12 interview. Visabeira has a 2 percent stake in Portugal Telecom and Varela is a member of the company’s board. “To withdraw such a significant part of the company would be to amputate its growth potential,” he said.

Portugal Telecom has counted on Brazil to spur revenue as growth slows and competition increases at home. Its Brazilian sales rose 4.1 percent to 3.23 billion euros last year, while revenue from Portugal declined 1.9 percent. Vivo had 30 percent of Brazil’s 179 million wireless subscriptions at the end of March, according to the country’s phone regulator.

Closely held Visabeira, a maker of telecommunications and electrical equipment, based in Viseu, northern Portugal, has been a supplier to Portugal Telecom and its predecessor companies for about 30 years, Varela said.

Board ‘Deserves Trust’

Portugal Telecom, whose board rejected the Vivo offer, hasn’t called a shareholders’ meeting to vote on it, a move that Telefonica’s Chief Financial Officer Santiago Fernandez Valbuena called “perplexing” on a May 13 conference call for analysts.

“The board has in a consistent and consolidated way delivered results to shareholders,” Visabeira’s Varela said. “It’s normal that it deserves the trust to act in the best interests of Portugal Telecom and all its stakeholders.”

Visabeira is “comfortable” with its stake in Portugal Telecom, which “reflects the commitment to the company and the desire to participate in its growth process,” Varela said. He doesn’t rule out raising the stake if “in a certain context it’s seen as important to defend our vision for the company.” For now, “we don’t see that need.”

The European Commission is challenging the Portuguese government’s veto power over key decisions at the company. Telefonica, Spain’s biggest phone company, is Portugal Telecom’s top investor, with a 10 percent holding.

Visabeira is also an investor in Zon Multimedia SGPS SA, which competes with Portugal Telecom in the voice, Internet and pay-television markets, with a 2.15 percent stake, according to the Zon website. “We’re comfortable with the position we have,” Varela said.

To contact the reporter on this story: Anabela Reis in Lisbon at areis1@bloomberg.net.

Source